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Showing 61 to 80 of 130 Records
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1976 (2) TMI 78 - ITAT MADRAS-A
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... ... ..... s case. We have no hesitation, therefore, in holding that the order passed by the ITO is correct and requires no modification. The order of the CIT is set aside. 5. At the time of the hearing, the matter came up as to whether, in view of the provision made by way of development rebate reserve for part of the development rebate in the year when the assessee earns an income, a further reserve to the extent of this amount should be created. Though we are not directly concerned with this preposition since the assessee has restricted its appeal to the allowance of Rs. 1,94,272 and the Department has already granted development rebate in respect of 4 lakhs and odd without resorting to the decisions referred to above and the circular issued by the Board, at the time when development rebate to the extent of Rs. 4,57,860 is to be actually allowed out of profits earned by the assessee in the future, we have to clarify no reserve to this extent need be created. 6. The appeal is allowed.
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1976 (2) TMI 77 - ITAT MADRAS-A
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... ... ..... by way of non-genuine hundi credits. According to the learned counsel the assessee was a very aged man and his staff also left him, and he had no help apart from his wife who is an illiterate. The deceased assessee had given such explanations and had pointed out that due to such circumstances he physically and mentally broke down, and he could not file the return in time. The Tribunal Madras Bench lsquo B rsquo in ITA. No. 2119/1972-73 by its order dt. 7th Nov., 1974 had accepted the very same reasons given by the assessee for the delay during the previous year of 34 months. Considering the facts and circumstances of the case we find there is no reason to reject the explanation offered by the deceased assessee. According to us the assessee was prevented by the reasonable cause from filing the return in time and such delay was due to circumstances beyond his control. So no penalty is exigible. 5. In the result, the appeal is allowed and the penalty of Rs. 25,079 is cancelled.
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1976 (2) TMI 76 - ITAT MADRAS-A
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... ... ..... t he only states that such estimate was much lower than Rs. 46,159 which was returned by the assessee. In as much as the estimate is not available on record and since the learned counsel of the assessee asserts that the estimate of income shown by the assessee was Rs. 46,000. The assertion by the representative has to be taken as correct in as much as advance tax payable on this estimate was Rs. 16,000 and the assessee had paid that advance tax in two instalments though the second instalment was paid beyond the financial year. As such we are inclined to accept the assessee rsquo s case that she had filed an estimate of income in January, 1971 of Rs. 46,000. In that case the assessed income being only Rs. 51,580 the estimate as filed does not call for any levy of penalty as it is within the permissible limit and not an underestimate. As such no penalty under s. 273(a) is exigible. 5. In the result, the appeal is allowed and penalty confirmed by the AAC of Rs. 681 is cancelled.
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1976 (2) TMI 69 - ITAT MADHYA PRADESH
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... ... ..... eclarations filed on behalf of the appellants were incomplete. There is no indication as to how the assessing authority had come to the conclusion that the appellants had knowingly filed incomplete declaration. It was argued on behalf of the appellants that in several other cases of similar default maximum penalty had never been imposed and the default had been leniently treated. The quantum of penalty will obviously have to be determined according to facts of each case. But it is now settled law that the quantum of penalty should be determined on judicial considerations. What reasons weighted with the AO imposing the maximum penalty in all these cases is not, however, clear from the record. For these reasons, orders passed so far imposing penalty are set aside. Since all the relevant facts have not been ascertained the case is remanded to the STO Rajnandgaon for a fresh inquiry and disposal according to law after giving the appellants a reasonable opportunity of being heard.
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1976 (2) TMI 68 - ITAT MADHYA PRADESH
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... ... ..... ssessing authority on the basis of suspicious, of the gross sales was excessive and, therefore, reduced the same to Rs. 3,25,000, which more or less corresponds to the gross sales disclosed by the assessee rsquo s accounts. The appellate authority, however, has maintained the taxable sales at Rs. 7,000 and levied tax at the rate of 7 per cent. Hence the present appeal. 3. After hearing the argument of counsels on both sides and also after studying the records. I find that there is no evidence on record to support the inference that the appellants have sold any tamarind which is taxable at the rate of 7 per cent. A mere assertion that vegetable sellers often sell tamarind also, cannot justify an inference that the assessee had sold it. In the absence of any evidence on record regarding sale of tamarind on the part of the appellants, the finding of the assessing and appellate authorities on this aspect are set aside. The appellants would be entitled to consequential tax relief.
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1976 (2) TMI 65 - ITAT JABALPUR
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... ... ..... tion of the accounts and the estimates of turnover and gross profit, the Appellate Assistant Commissioner rejected the claim of the assessee on the ground that no interference was called for. He has not discussed as to why no interference was called for in this case. The assessee is, therefore, in second appeal before the Tribunal, on this point. 4. It is the contention of the learned counsel for the assessee that this is the very first year of the assessee rsquo s business in cloth and it had to carry on this business in competition with other well-established dealers in this line. Keeping this fact in view, it could not be said that the gross profit of 10 disclosed by the assessee in unreasonably low. Accordingly, we do not find any justification for rejecting the trading results disclosed by the assessee for the present year. The Income Tax Officer is directed to accept the trading results disclosed by the assessee for the assessment year 1972-73. 5. The appeal is allowed.
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1976 (2) TMI 64 - ITAT JABALPUR
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... ... ..... s also or, in other words, the Explanation should not be involved also in cases where income assessed does not exceed Rs. 10,000 if the difference of over 20 per cent is due to addition of cash credits. 2. The principles regarding application of the Explanation to s. 271(1) are given in para 2 of the Board rsquo s Circular dt. 31st Oct., 1966 mentioned above, para 3 is an exception to para 2 and the result is that in cases with income below Rs. 10,000 the Explanation should not be invoked if the addition is merely on account of estimate of profits or additions of cash credit. 10. It is needles to say that the above Circular is binding on all the departmental authorities and the ITO was clearly in error in dis-regarding that Circular and imposing a penalty on the assessee. In the result, I cancel the penalty of Rs. 3,000 sustained by the AAC an allow the assessee rsquo s appeal. 11. For the same reason, the appeal, filed by the ITO namely ITA No. 502(Jab)/1975-76 is dismissed.
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1976 (2) TMI 63 - ITAT JABALPUR
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... ... ..... very unlikely that a person who is himself a money lender and who has also a bank account in his name would have kept such amount idle for nearly 15 years, even if it was ear marked for charity. Considering all the circumstances of the case, we are not satisfied that the assessee had satisfactorily explained, with any kind of acceptable evidence, the source of funds to the extent of Rs. 23,000, discovered at the time of the search. In the result, we would set aside the order of the AAC deleting this amount from the total income of the assessee and restore the addition to this extent, made by the ITO. (4) Rs. 2,600 being loans advanced in the name of Nawal Kishore deleted by the AAC. As we have already held, the loans advanced in the name of Nawal Kishore could not be treated as transactions belonging to the assessee. Accordingly the AAC rightly deleted this addition. 27. In the result an addition of Rs 23,000 made by the ITO is restored. The Appeal is partly allowed as above.
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1976 (2) TMI 62 - ITAT HYDERABAD-B
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... ... ..... d to belong to the family and the income therefore cannot be included. 9. Before we part with this part of the case, we may notice that the case of and Andhra Pradesh High Court in Kalwa Devadattam and Ors. vs. Union of India and Ors., had gone to the Supreme Court and it is reported in (1963) 49 ITR 165. Their Lordships assumed that the statement of Nagappa in that case amounted to a claim, but held that there was no order as such. It is on that footing they decided the question. We may also point out that the question of partition came collaterally to be considered in that case and not directly as in the instant case before us. 10. There is another small ground raised in the appeal and that is with regard to the addition to the gross profit of Rs. 5,000. The AAC, on the basis of similar cases, made an addition of Rs. 5,000. We do not find any reason to interfere with the same. The addition of Rs. 5,000 is accordingly upheld. 11. In the result, the appeal is allowed in part.
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1976 (2) TMI 61 - MADHYA PRADESH HIGH COURT
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... ... ..... riod of eight years. To penalise appellant now after eight years for something for which the initial omission was made by the Department itself, would not to be fair. 4. In Commissioner of Sales Tax vs. Bombay General stores, the M.P. High Court had held that in the absence of mens rea a dealer cannot be penalised for contravention of clause (b) of s. 10. The circumstances of this case show that the dealer had applied for including these goods in the registration certificate and when it came to his notice, though belatedly that the goods were not specified he applied for the amendment of the registration certificate with retrospective effect. Under the circumstances it cannot be held that there was means-rea and the dealer had made false representation while issuing lsquo C rsquo forms. The decision of the M.P.High Court in Pennalal Umeshkumar vs. Commissioner of Sales Tax (2), would also support this view. 5. The appeal is allowed. Penalty imposed under s. 10-A is set aside.
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1976 (2) TMI 60 - MADHYA PRADESH HIGH COURT
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... ... ..... ged for any of the products sold. Further these postal charges have been included in the taxable turnover irrespective of the consideration whether they relate to sales and tax paid or taxable medicines. If V.P.P. charges are to be taken as part of the sale price, then to the extent that sales prices of tax paid sales are allowed as deductions, V.P.P. charges included as part of sale prices of tax paid goods should not have been included in the taxable turnover. But the fact that it had been so included during 1968 would indicate that whatever was recovered from purchasers had been taken as automatically included in the turnover as sale price. In the light of the decision of Madhya Pradesh High Court referred to above it was not correct to have included these V.P.P. charges as part of the taxable turnover in tax free or taxable sales. All such amounts should be excluded from the taxable turnover and the appellants are entitled to consequential tax relief. Ordered accordingly.
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1976 (2) TMI 59 - ITAT DELHI-C
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... ... ..... e case of the assessee. We also agree with the finding of the AAC that there was no suppression of stock as the amount of the insurance did not exceed the actual stock in hand. The question for our consideration, therefore, remains as to whether in view of the application of the provisions of s. 145 of the Act any addition can at all the justified. We find that although in the asst. yr. 1969-70 the gross profit shown was 14.9 per cent but the sales were much smaller. We also find that in subsequent years the ITO himself has accepted lower rates of profit shown by the assessee. A gross profit is not a sacrosanct figure. It can vary marginally either way. The assessee declared a gross profit at 14 per cent in the year under appeal on enhanced sales as compared to the earlier year. In our opinion, therefore, there is no case for adopting a higher rate of profit as has been done by the AAC. We, therefore, delete the addition of Rs. 12,905. 4. In the result, the appeal is allowed.
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1976 (2) TMI 58 - ITAT DELHI-C
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... ... ..... lure to pay advance tax are both items which are ancillary to the tax payable by the assessee on the basis of the total income determined. It is not necessary to pass separate orders for charging interest. In the latter order the Tribunal further observed that interest as a matter of practice on the belated filing of estimate or return is charged by passing the assessment order and interest so chargeable forms part of the sum payable by the assessee as determined in the assessment under s. 143(3) of the Act. Following these decisions, we hold that the direction given by the CIT to the ITO to levy interest according to s. 217(1A) is valid. 10. In the result we uphold the order of the Addl. CIT in regard to the direction to the ITO to consider the chargeability of interest under s. 217(1-A) of the Act. However, we cancel the order of the Addl. CIT in regard to the direction to the ITO to initiate penalty proceedings under s. 273(c) of the Act. 11. The appeal is allowed in part.
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1976 (2) TMI 57 - ITAT DELHI-B
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... ... ..... ion made by the ITO for low yield of groundnut. The yield shown by the assessee was 66.32 per cent. But the ITO though that minimum yield should be 68 per cent. He, therefore, made an addition of Rs. 2,000 which the AAC sioner confirmed. 6. On behalf of the assessee it is submitted that the yield shown by the assessee was 66.32 per cent and this was reasonable. It is pointed out that in the case of another dealer of Budaun, the AAC has accepted a rate of 67 per cent. Also in the case of another dealer of Wazirganj a matter came up before the Tribunal and the Tribunal had accepted the assessee rsquo s book results which had shown percentage of 66 per cent in the asst. yr. 1973-74 and 67.25 per cent in the immediately preceding year. I am of opinion that having regard to the comparable cases, there is no material to hold that the yield of 66.32 per cent shown by the assessee is low or unreasonable. The addition of Rs. 2,000 is also, therefore, deleted. 7. The appeal is allowed.
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1976 (2) TMI 56 - ITAT DELHI-B
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... ... ..... firm after October, 1972. In my opinion there are a few loose ends which require to be tied up in the present case. After all the assessee can only go to a particular extent to prove the sources available to a creditor. The Department should also help and cooperate in trying to make further inquiries when they are called for and to relly to ascertain whether the assessee rsquo s version is true or not. It appears to me that in the present case such an inquiry is necessary. I, therefore, set aside the order of the ITO with regard to this addition and also the order of the AAC in this respect and restore the case to the file of the ITO. The ITO will examine the position regarding the state of account of Nathulal with the firm Chhotelal Nathulal. He will also give the assessee an opportunity of substantiating if it goes with the genuineness of the cash credit by other evidence on some of the lines indicated above. 7. In the result this appeal will be treated as allowed in part.
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1976 (2) TMI 55 - ITAT DELHI
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... ... ..... alty. 6. However, it is also clear from a perusal of the law as existing prior to 1st Sept., 1969 that the maximum penalty that could be imposed was of 50 per cent, of the tax. This was computable at the rate of 2 per cent for each month s default. In other words, the maximum period which could invite penalty could be 25 months. Therefore, although the default subsisted the penal consequences thereof ceased to operate. It therefore, follows that after the expiry of those 25 months, the offence part of the default exhausted itself so far as penalty was concerned. 7. Now in the present cases, these 25 months expired before the amendment in law with effect from 1st April, 1969 came into force. This amendment could not in our opinion, revive offences which had already exhausted themselves. We therefore, hold though for different reasons that the maximum penalties leviable in the present cases were are computed by the AAC. 8. The result therefore, is that we reject these appeals.
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1976 (2) TMI 54 - ITAT DELHI
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... ... ..... l issue has been decided by the Tribunal in the cases of other two partners Baldev Kumar and Sukhdev Raj by its orders dt. 5th Aug., 1974. The Tribunal s detailed order is passed in w.f.a. Nos. 125 to 130 (Del) of 1973-74 in Baldev Kumar s case. There being no change in the facts and circumstances of the assessee s case, we are included to follow the view taken that case and consequently all these Departmental appeals will fail and we order accordingly. It may be pointed out that there is an additional reason for dismissing that appeals for the asst. yrs. 1962-63 and 1963-64 as it has been correctly submitted on behalf of the assessee that no addition had been made in the income-tax assessment of the firm in those years and no settlement was arrived at with the Department. Similarly for the asst. yr. 1964-65 the amount added by the WTO was only Rs. 10,124 and not Rs. 23,531 as is erroneously shown in the Departmental ground of appeal. 4. All the eleven appeals are dismissed.
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1976 (2) TMI 53 - CUTTACK
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... ... ..... lorine which the assessee had arranged to supply by approaching, the selling dealer outside the State of Orissa only earning a commission for it. In such circumstances, I cannot but agree with the contention raised by the learned counsel for the respondent that the assessee acted as a simple commission agent for the transactions under consideration. 18. In the ultimate analysis, I record the following findings - (i) The transactions under appeal were in course of inter-State trade and commerce (ii) The assessee acted as a pure and simple commission agent for supply of caustic soda and liquid chlorine earning for it a commission. 19. In view of the above findings it cannot be said as contended by the revenue that the transactions were intra-State in character as to attract the provisions of Orissa Sales Tax Act. Accordingly the appeals are without merit. 20. In the result, the appeals are dismissed and the orders passed by the Assistant Commissioner of Sales Tax are confirmed.
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1976 (2) TMI 52 - ITAT CUTTACK
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... ... ..... m. No doubt the deceased received less than what he was entitled to but that itself does not show that he intended to give up the balance. It may be that the deceased acted on the footing that he was not entitled to anything more as suggested on behalf of the accountable person or it may be that the deceased deliberately restricted his claim and relinquished his share in the goodwill. The Revenue has not brought any evidence to resolve this question and our finding on this point must therefore be in favour of the accountable person since the Revenue has filed to show that there was an extinguishment by the deceased. It follows that there cannot be deemed disposition in terms of Explanation to s. 2(15) which can thereafter be deemed to have passed on the death of the deceased in terms of s. 5 of the Act. We must therefore confirm the order of the Appellant Controller directing deletion of the sum of Rs. 15,000 from the principal value of the estate. 6. The appeal is dismissed.
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1976 (2) TMI 51 - ITAT COCHIN
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... ... ..... of the WT Act was only by way of greater caution and that ornaments made of gold, silver or platinum and studded with precious stones are to be considered as jewellery even for the assessment years prior to 1st April, 1972 and hence such ornaments would not be entitled for exemption for the assessment years subsequent to the asst. yr. 1962-63. But it is to be noticed that the above decision, though rendered on 13th Dec., 1973, was not available to the AAC, who, it may be noted, passed orders under appeal on 24th Dec., 1973. It could not, be said that on the day when the AAC passed the orders in question there was no scope for any debate as regards the question as to whether the ornaments mentioned in the first explanation to s. 5(1)(viii) should also be considered as jewellery for the assessment years under consideration. For the above reasons we hold that the AAC was justified in dropping the proceedings under s. 35 of the WT Act. 9. In the result the appeals are dismissed.
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